BEYOND BUDGET
Assalamu alaikum wa Raḥmatullahi wa Barakatuh.
As a public servant with more than 20 years of service, one of my visions is for our government to operate in a more transparent, open, inclusive, sustainable, and efficient manner. Thus, when I assumed office as the Department of Budget and Management (DBM) secretary, my marching order was to fully realize the integration and unification of our government’s financial management systems — first conceptualized over a decade ago.
Budget and Treasury Management System (BTMS) kickoff
After almost two and a half years at DBM’s helm, I am glad to share that this vision is finally becoming a reality.
Last Dec. 4, we held the kick-off for the implementation of the BTMS. This event marks a transformative step in our country’s journey toward modernizing public financial management, consistent with President Ferdinand R. Marcos Jr.’s (PBBM’s) 8-Point Socioeconomic Agenda that puts a premium on “digitalizing, harmonizing, and standardizing government data” that ensures swift and efficient delivery of services to the public.
This initiative also aligns with our aspirations outlined in the Philippine Development Plan 2023-2028 and our collective vision for AmBisyon Natin 2040. By modernizing our financial processes, it ensures that every peso is spent wisely to improve the lives of our kababayans.
The BTMS is a component of the Public Financial Management (PFM) Reforms Roadmap 2024-2028, which we endorsed to PBBM last September, and in compliance with Executive Order No. 29, signed by the President in June 2023, to strengthen PFM information systems and streamline processes.
The BTMS represents a stark departure from the fragmented systems of the past. Historically, financial management relied on disconnected processes, creating inefficiencies and leaving room for errors and opacity. The integrated nature of BTMS addresses these concerns, providing realtime financial tracking, cloud reliability, and uniform financial standards across 32 departments. It supports fiscal discipline and ensures that government spending maximizes value for every peso, thereby driving inclusive growth.
Thus, I firmly believe that the BTMS is more than just a technological milestone; it represents a paradigm shift in the way we manage and oversee public finances. With this system, we are laying the foundation for an integrated financial management information system that will propel us toward a future of transparent, efficient, and accountable governance.
Partners for BTMS development
I am glad to share that on the following day, Dec. 5, we formalized our collaboration with Free-Balance, a PFM software solution provider, through a ceremonial contract signing, to bring cutting-edge technology to enhance transparency and efficiency.
Notably, this Canada-based software company is a signatory to the United Nations Global Compact, a call to companies to align strategies and operations with universal principles on human rights, labor, environment, and anti-corruption, and to take actions that advance societal goals.
The contract will allow FreeBalance to provide its financial management platform and services for implementing the BTMS, providing solutions for budget and treasury management and budget execution. The integrated system includes interfaces for purchasing and expenditures, electronic fund transfers, and core financial modules, among others.
Though it uses the same platform as that launched during the previous administration, we have rolled out the new BTMS under a recalibrated strategy adopting microservices and cloud-based technologies, as well as enhancing its interface for ease of use. It is also larger in scale, covering all agencies. It provides integration, connecting agencies in a unified financial management platform; instills transparency through accurate, real-time data for better decision-making; and encourages sustainability by building adaptive, accountable, and future-ready systems. As part of the larger IFMIS initiative, the BTMS is an action-oriented approach to governance reform.
As Manuel Schiappa Pietra, president and CEO of FreeBalance noted, “The BTMS is not just a system but a foundational piece of the government modernization agenda.”
With this, I am convinced that the project will establish the Philippines as a global model for PFM, fostering trust among stakeholders.
Whole-of-government approach
Let me then extend my heartfelt gratitude to our public and private partners, development partners such as the World Bank and the Asian Development Bank, other key stakeholders, and most especially our President, for their unwavering support on this project. Their involvement demonstrates the power of collaboration and sets an inspiring example for others to follow. I also extend my profound appreciation to the pilot rollout agencies that have taken the lead in adopting this transformative system, for their courage and commitment to innovation will pave the way for a new era in PFM.
Beyond budget, the BTMS is more than a system and a technological upgrade — it is a crucial step in turning the principles of transparency, inclusivity, and sustainability into tangible actions, a reflection of our resolve to build a governance structure that better serves the present and future Filipinos.
Recognizing that the successful implementation of the BTMS will require a collective effort, not just from government institutions but also from the private sector and civil society, I invite everyone to join us in this endeavor, ensuring that this system becomes a cornerstone of a more efficient and accountable government — a beacon of progress in our Bagong Pilipinas.
(Amenah F. Pangandaman is the Secretary of the Department of Budget and Management.)